8-KRegulation FD

Cigna Group 8-K Report, Regulation FD Disclosure (Sep 9, 2020)

Filed September 9, 2020For Securities:CI

Summary

Cigna Group (CI) filed an 8-K on September 9, 2020, primarily to update investors on financial guidance and the divestiture of its U.S. Group Disability and Life business. The company reaffirmed its full-year 2020 projections for consolidated adjusted revenues between $154 billion and $156 billion, and consolidated adjusted income from operations per share in the range of $18.00 to $18.60. Looking ahead, Cigna reiterated its target of achieving consolidated adjusted income from operations per share of $20.00 to $21.00 in 2021. The company also provided an update on the sale of its U.S. Group Disability and Life business to New York Life. Cigna has obtained 55 out of 65 required regulatory approvals. While no objections are expected, the ongoing COVID-19 pandemic has delayed the approval process, pushing the expected closing date to the fourth quarter of 2020. Additionally, Cigna confirmed its expectation to be in the upper 30%s for its debt to capitalization ratio by the end of 2020.

Key Highlights

  • 1Reaffirmed 2020 consolidated adjusted revenue guidance of $154-$156 billion.
  • 2Reaffirmed 2020 consolidated adjusted income from operations per share guidance of $18.00-$18.60.
  • 3Maintained 2021 consolidated adjusted income from operations per share target of $20.00-$21.00.
  • 4Provided an update on the sale of the U.S. Group Disability and Life business to New York Life.
  • 5Secured 55 of 65 required regulatory approvals for the divestiture.
  • 6Revised the expected closing date for the U.S. Group Disability and Life business sale to Q4 2020 due to pandemic-related delays.
  • 7Confirmed expectation of debt to capitalization ratio in the upper 30%s by December 31, 2020.

Frequently Asked Questions

Cigna reaffirmed its projected full-year 2020 consolidated adjusted revenues in the range of $154 billion to $156 billion and consolidated adjusted income from operations per share between $18.00 and $18.60. For 2021, the company reiterated its target for consolidated adjusted income from operations per share to be in the range of $20.00 to $21.00.

Cigna has obtained 55 out of the 65 required regulatory approvals for the sale to New York Life Insurance Company. Although no objections are anticipated, the COVID-19 pandemic has slowed the approval process, leading to an updated expected closing date in the fourth quarter of 2020.

Cigna expects its debt to capitalization ratio to be in the upper 30% range by December 31, 2020.

No, the 'adjusted revenues' and 'adjusted income from operations' measures are non-GAAP financial measures. Cigna uses these non-GAAP measures because management believes they are not indicative of past or future underlying performance. The company cannot provide a reconciliation to the most directly comparable GAAP measures on a forward-looking basis due to the unpredictable nature of certain components.